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Some of our members have asked us about penny stocks, and as a rule we stay clear of them. Most stocks trading below a dollar are there for a reason. But it certain situations, there are opportunities to take advantage of “Mr. Market’s” pricing confusion.

So with that perspective, we thought it might be beneficial to look at some serious value plays. These “Wimps” are the cheapest stocks in the S&P 500 (.INX).

Barring companies over a buck, we are presented by a number of “deep value” companies that would make Bill Miller shiver – that is, if he wasn’t still curled up in a corner from his beating at the hands of the market last year.

Amongst those listed companies below a dollar, American International (NYSE: AIG) at .35 may not surprise, but E*Trade Financial (Nasdaq: ETFC) at .62 does.

Office Depot (NYSE: ODP) at .68 is another that shouldn’t surprise with business spending down. On the other hand Genworth Financial (NYSE: GNW) at .84 and Tenet Healthcare (NYSE: THC) .92 aren’t shocking with the state of the economy and financial sector.

Legendary investor John Templeton’s famous start came from buying some of the cheapest stocks in 1939. He bought 100 shares of every company trading under a dollar. The returns from those purchases made him a billionaire. Time will tell if any of us can do the same in today’s market. But today’s wimps could be tomorrow’s portfolio heroes.

Source: Opportunities in the S&P 500's Price Wimps